Medicines and Related Substances Act, 1965
R 385
Banks Act, 1990 (Act No. 94 of 1990)Chapter VI : Prudential Requirements74. Failure or inability to comply with prudential requirements |
| (1) | If— |
| (a) | a bank fails to comply with a provision of section 70 or 72, or is unable to comply with any such provision; or |
| (b) | a controlling company fails to comply with a provision of section 70A, or is unable to comply with any such provision, |
the bank or controlling company shall forthwith in writing report its failure or inability to the Authority, stating the reasons for such failure or inability.
| (2) | The Authority may, notwithstanding section 91A, summarily take action under this Act against a bank or controlling company referred to in subsection (1) or, if in the circumstances the Authority deems it fit to do so, condone the failure or inability and afford the bank or controlling company concerned an opportunity, subject to such conditions as the Authority may determine, to comply with the relevant provision within a specified period. |
| (3) | Irrespective of whether criminal proceedings in terms of this Act have been or may be instituted against a bank or controlling company in respect of any failure or inability referred to in subsection (1), the Authority may, subject to any condonation granted under subsection (2), by way of a written notice impose upon that bank or controlling company, in respect of such failure or inability, a fine— |
| (a) | in the case of any failure or inability to comply with the provisions of section 70 or 70A, not exceeding one-tenth of one per cent of the amount of the shortfall for each day on which such failure or inability continues; or |
| (b) | in the case of any failure or inability to comply with the provisions of section 72, not exceeding three per cent of the amount of the shortfall. |
| (4) | A fine imposed under subsection (3) shall be paid to the Authority within such period as may be specified in the relevant notice, and if the bank or controlling company concerned fails to pay the fine within the specified period the Authority may by way of civil action in a competent court recover from that bank or controlling company the amount of the fine or any portion thereof which the Authority may in the circumstances consider justified. |
[Section 74 substituted by section 23 of Act No. 20 of 2007]
